German Chancellor Olaf Scholz (SPD) has welcomed the shift in US energy policy by Donald Trump. If Trump succeeds in making the US a major exporter of fossil energy again, it would be “good for Europe and Germany, as it would help us in the transition phase to climate neutrality, which will last until the mid of the century”, Scholz told the “Handelsblatt”(Monday edition). “A larger offer on the world market means lower energy prices.”
Scholz praised Trump for deciding to build new terminals for liquefied natural gas (LNG) unlike his predecessor Joe Biden. Scholz said he had always spoken out against the stop of the expansion of LNG terminals in the US. “It is good that it will now be continued.”Trump’s decision to withdraw from the Paris Climate Agreement, however, was regretted by Scholz. “Climate warming is a serious danger”, he said. “Germany will continue its course.”
If Trump, as announced, imposes tariffs also on imports from the EU, Scholz left no doubt that the US must reckon with countermeasures. “If the US changes its tariff policy against the EU, we can react together and defend ourselves. A trade war benefits no one. But we are not weak”, Scholz said.
The Chancellor expressed confidence that Trump will continue to support Ukraine and the security policy cooperation with Europeans. “We can achieve a common approach in Ukraine policy”, Scholz said. At the same time, he spoke out against the proposal for a purely European peacekeeping force in Ukraine. “I am strictly against European solo acts in this question. We must strive to do everything we do in close cooperation with the US.”This is the basic principle of NATO. It is premature, by the way, to speculate about what will happen after the war.
Scholz is skeptical about EU plans for a new, jointly financed defense fund. It will not work, “if mainly Scandinavian countries, Germany and the Netherlands should bear the costs.”First of all, it is important that all European NATO states achieve the two percent target for defense spending on their own.”
Scholz calls for a reform of the debt brake to enable Germany to bear the burdens without hard social cuts. A new stimulus program is not ruled out after the election. Although it is necessary to observe the constitutional provisions, “if the situation requires it, one must act. One may not rule out any option.”
According to the “Handelsblatt”, the German government will lower its economic forecast for the current year in its annual economic report from 1.1 to 0.3 percent. The economy could decline even more strongly, if Trump, as announced, imposes tariffs on imports from the EU.